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ECO 372 Week 5 Final Exam


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Title: ECO 372 Week 5 Final Exam

ECO 372 Week 5 Final Exam
DQ 1. Explain how foreign exchange rates are
determined. How do changes in interest rates,
inflation, productivity, and income affect
exchange rates? What are the advantages and
disadvantages of a weak versus a strong dollar
for imports, exports, international and domestic
markets? Please use a current example of an
exchange rate Swiss Franc-Euro, US Dollar -
Japanese Yen, etc. and describe how it affects
the two or more countries involved. DQ 2. As
was seen during the financial crisis of the
1930s, and in recent history, markets are
interconnected globally. Aside from financial
markets, different countries have different
resources. Choose a country other than your own,
which has not already been selected by another
student, and research the EIU country data. Based
on absolute advantage and comparative advantage,
explain the effect of global economic conditions
on the choices available to that country. You
must include the current exchange rate of the
countrys monetary unit.
  • DQ 3. Review the U.S. Trade Representatives
    website at http//
    ee-trade-agreements. Select a country or trading
    bloc with which the United States has a current
    or pending free trade agreement. What are areas
    of comparative advantage of the United States and
    its trading partner? What are the benefits and
    disadvantages specific to this free trade
  • Individual Assignment
  • Assume that you have been appointed as the
    Speaker of the House. You must deliver a speech
    about the current state of the U.S.
    macroeconomics to a number of amateur reporters
    who are unfamiliar with economics.
  • Prepare a 750- to 1,050-word speech in simple
    terms and concepts that focus on international
    trade and foreign exchange rates.

  • Integrate a summary of your answers to the
    following questions and cite external research to
    further justify your facts
  • What happens when there is a surplus of imports
    brought into the U.S.? Cite a specific example of
    a product with an import surplus, and the impact
    that has on the U.S. businesses and consumers
  • What are the effects of international trade to
    GDP, domestic markets and university students?
  • How do government choices in regards to tariffs
    and quotas affect international relations and
  • What are foreign exchange rates? How are they

  • Why doesnt the U.S. simply restrict all goods
    coming in from China? Why cant the U.S. just
    minimize the amount of imports coming in from all
    other countries?
  • Learning Team Assignment
  • Discuss within your Learning Team how and why the
    U.S.s deficit, surplus and debt have an effect
    on the following
  • Tax payers
  • Future Social Security and Medicare users
  • Unemployed individuals
  • University of Phoenix student

  • The United States financial reputation on an
    international level
  • A domestic automotive manufacturing (exporter)
  • An Italian clothing company (importer)
  • GDP
  • Write a 750- to 1,050-word paper summarizing the

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